IN THIS ISSUE

• Why You Need to Check Yo’ Payments 🏦

• How E-commerce Projects Fail Before Sales 🚫🛒 

• What’s Your Outlook on Check Usage? 🗳️

• New! How to Save Time with Saved Lists 📋💡

DEEP DIVE

Check Yo’ Checks Before They Wreck Yo’ Business

Ah, checks – those little slips of paper that transport us back to the days of dial-up internet. The LBM industry has long relied on checks for transactions, but is it time to wave goodbye to this ancient practice? Ice Cube dropped "Check Yo Self" in 1992, and I think it's time we do the same with this '90s-era payment method before they wreck your business efficiency.

Why are we still using checks?

In an industry that's seen the rise of drones for site inspections and automated 3D-imaging for project management, it seems almost absurd that checks remain a staple. Why do we cling to this relic of the past? Tradition? Habit? Or maybe it's just that warm, fuzzy feeling of writing out a check, knowing it won't clear until next Tuesday.

Jokes aside, that might actually be the case. Checks allow businesses to manage cash flow. They know they have a little leeway before the money is taken out of their account. But intentionally slowing payments adds unnecessary delays in the supply chain, ultimately leading to reduced productivity and fewer homes being built on time.

However the practice is steadily waning. In 2022, 33% of B2B payments in the U.S. and Canada were made by check, down from 42% in 2019, according to the Association of Financial Professionals (AFP). The decline in usage has been evident over the past two decades.

The hidden costs of paper checks

From the paper and ink to the time spent writing, mailing, and processing them, checks add up to more than just the amount written on them. Not to mention the occasional lost check, which can lead to delays and headaches for everyone involved.

Accounts payable (AP) and Accounts receivable (AR) processes are incredibly time-consuming, especially for small teams. Most spend six to ten hours every week cutting checks, processing ACH, and reconciling payments. Fewer checks to process means your AP team can do more with less. That’s important if you are staff and resources constrained.

AFP’s 2022 Payments Cost Benchmarking Survey found the median cost of paper checks to be between $2.01 and $4. Dealers should consider the savings potential of promoting more cost-effective digital payment methods.

What are the alternatives?

The ACH network, along with credit card payments, has seen significant growth in North America. Currently, 39% of businesses use ACH credits, while only 26% continue to use checks. This represents a 13 percentage point gap between paper and digital payments, a sharp increase from 2019 when the gap was just two percentage points.

Overcoming the check habit

Implementing new payment practices can feel daunting. However, the benefits of digital payments – faster processing, reduced errors, and improved cash flow – make a compelling case for making the switch.

And your customers already know this.

According to PYMNTS, 83% of U.S. construction companies accept digital payments from their clients.

Many LBM dealers argue that their clients are too set in their ways to switch from checks, yet the data shows that a vast majority of these clients are already using digital payments within their own operations.

It's important to provide multiple payment options so your customers have the convenience of paying the way they want. But that doesn’t mean you can’t prompt the use of more cost-effective payment methods with incentives like early pay discounts to lower your overall business transaction costs.

If the LBM industry is serious about improving productivity and efficiency in housing construction, it's time we retire the checkbook.

Why do e-commerce projects fail?

Many e-commerce implementation projects in LBM fail before they even make a single sale.

Brad Cumiskey, our VP of Product, lays out the most common reasons why he sees e-commerce projects fail to deliver results (and how to avoid them)!

PULSE CHECK

Check usage in your LBM business

We will provide a breakdown of results from responses in our next issue.

Have you got a question you’d like to get a pulse check on among LBM dealers? Hit 'Reply' to this email to send us your question.

WORTH READING

• Fonthill Lumber’s grand expansion: 🚀 Fonthill Lumber just went big—really big. They’ve moved to a new location in Welland that’s four times larger than their previous site. This massive expansion allows for more inventory and better customer service, showcasing their growth and commitment to the Niagara Region. It's an interesting read with the manager offering insightful details on the reasons for the move and what it means for their operations.

FROM OUR PRODUCT TEAM

We recently released Saved Lists

We recently released Saved Lists, our latest feature designed to enhance your customer's shopping experience. Empower your customers with the ability to create unlimited personal lists tailored to their specific needs.

Whether they are managing different project stages, job sites, or simply organizing their favorite products, this feature provides value-adding convenience for your customers. Saved Lists simplify the reordering process, reduce friction and encourage repeat purchases.

To access Saved Lists, navigate to Dealer Admin > Products > Lists. For an in-depth guide to using this feature read our help article.

NAIL THE TREND

@lynxlumberyork showcasing their delivery capabilities from a unique perspective!

A helpful video from @benderlumber educating customers on the different use cases for Evolve Stone, a product they stock.

@benderlumber

Evolve Stone offers prefabricated corners, or you can create a classic butt joint. But this DIY corner method offers the most versatility!... See more

@longbrosbldg with a recap video from their Contractor Day. Contractor days are a great way to show your appreciation for your customers and drive awareness of your newest products or services.

longbrosbldg

View more on Instagram

UPCOMING EVENTS

Your thoughts?

Was this issue a hit or a miss? Whether it's cheers or jeers, we're all ears. Share your feedback and tell us what you're itching to see more of. Just hit 'Reply' to this email with your thoughts.